I am becoming fascinated watching second hand guitar prices.
The variation of what people price things at is really interesting..
there seems to be a relatively recent phenomenon of the used guitar which is more expensive than the current selling price of the same model.
For example there is an SG Standard that is a few years old on Facebook for £1400, Andertons currently selling them for £1399..
Obviously there is a mark up for some vintage guitars or years with specific features that are special and no longer available, but I don’t understand the mindset of pricing your guitar at more than the cost of a new one..
Do people have a rule of thumb for an appropriate second hand price or does it vary significantly from model to model?
Comments
The best exemplar of this insanity is Essex Recording Studio. Think of a number, double it and tack something on to pay for a wee snort.
It's either "see, honey, I'm trying to sell it, but noone is interested" or "it's brand new, mint condition, only played it a couple of times, identical to the one in the store, why should I ask for less".
"Do people have a rule of thumb for an appropriate second hand price or does it vary significantly from model to model?"
70% of current brand new price, if in perfect condition, is a good starting point, 60% is still realistic usually.
Let's say the RRP of a standard, non-limited, generally available guitar is £1000.
RRP includes VAT (so guitar =£833), and shop price includes their overheads, profit margin, etc. So cost of guitar to shop is, approx £500 (to keep it simple, ignore all the other margins in the sales chain for now). £500 is the intrinsic value of the guitar, in brand new condition and shop warrantied.
What makes it worth more than that, used and with no warranty?
OK, so there's a little bit of supply and demand to consider; maybe someone really wants one of those, but can't afford the full £1000, and doesn't want to wait for the inevitable Black Friday, Summer Special, Blue Monday, New Year, Prime Day deal. So there's some want-it-now-but-not-at-full-price demand to factor in and that will vary by individual.
But recent s/h prices aren't rational and prices always revert to a rational level and smooth out the peaks and troughs. I'd say s/h prices are due a "readjustment". See also prices of s/h cars.
For me would advise not to pay more than...
1500 for a modern les paul standard
800 for a 90s/00s USA std strat or tele
2300 for a CS strat or tele.
3000 for a les paul custom, built in custom shop.
Because they are out there at those prices. On here i think people get turned off either by a) Low fretcount sellers b) continuous price drops on adverts with daft prices upon initial ad. The good value ones from sincere sellers at rock bottom prices get snapped up within 48 hrs usually.
The seller is unwilling to amend his listing to include free Collection In Person. I am unwilling to pay for the item be whizzed up to Swansea and back, exposing it to the risk of damage or theft by a courier driver.
eBay takes its cut from the final sale total. It is in the seller's financial interest to agree to CIP. Duh!
Please note. There has been no suggestion by either party of an off-eBay transaction.
Obviously you're right when considering the intrinsic materials and baked in labour costs, but that's not how either the shop or secondhand price is set anyway.
Formerly TheGuitarWeasel ... Oil City Pickups ... Oil City Blog 7 String.org profile and message
I suspect there are very few people who don't put wiggle room in their classified ads.